8. Contribution margin A) is always the same as gro B) excludes variable selling costs ss profit margin from its lculation. is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. D) equals sales revenue minus variable costs. 9. Why are budgets useful in the planning process? They provide management with information about the company's past performance. They help communicate goals and provide a basis for evaluation. They guarantee the company will be profitable if it meets its objectives. They enable the budget committee to earn their paycheck. A) B) C) D) 10. It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3,000 scales at $15 each. Garner would incur special shipping costs of S1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the effect on net income? A) $6,000 increase B) $6,000 decrease C) $9,000 decrease D) $45,000 increase 11. Budget reports should be prepared A) daily. B) monthly. C) weekly D) as frequently as needed. What term describes all business processes associated with providing a product or service? A) The manufacturing chain B) The product chain C) The supply chain D) The value chain 12